3 weeks ago

Himachal Slaps Widow and Orphan Cess on Petrol, Diesel

Himachal Slaps Widow and Orphan Cess on Petrol, Diesel
Himachal's Fuel 'Cess'Pool? Why CM Sukhu's Orphan-Widow Aid Tax Draws BJP Ire · timesnownews.com

In Himachal Pradesh, a state in India, the government has started charging a little extra money on every litre of petrol and diesel that people buy.

This extra charge is called the 'Widow and Orphan Cess.'

The government says the money will go into a special fund to help widows and children who have lost their parents.

But the tax is paid by everyone who buys fuel, including widows, families raising orphaned children, taxi drivers, and farmers.

Some people, like fuel dealers and opposition politicians, say this is not fair and worry that drivers will buy cheaper petrol in nearby states instead.

The government needs the money because it owes a lot of debt and expects to receive less help from the central government of India, which has already led to delayed salaries for state workers.

Right now the extra charge is 60 paise per litre, but the law allows the government to charge up to Rs 5 per litre later.

The chief minister says the government is committed to helping weaker sections and that the opposition should support the move.

A few other states in India already charge extra money on fuel for things like roads and pensions, but Himachal's is the first such cess set up especially for widows and orphans.

Key facts

Cess rate
60 paise per litre on petrol and high-speed diesel
Effective date
Midnight of August 11, 2026 (pump prices rose from August 12)
Legal basis
Section 6-A of the Himachal Pradesh Value Added Tax Act, 2005
Maximum permitted rate
Rs 5 per litre
Enabling legislation
Himachal Pradesh VAT (Amendment) Bill, 2026, passed by voice vote in the Budget Session; opposition walked out
Price rise in Dharamshala
Petrol up about 71 paise and diesel up 69 paise per litre
Anurag Thakur's estimate
Diesel up Rs 15.40 through two VAT hikes plus the cess; over Rs 1,000 crore in annual revenue
State finances
Debt over Rs 1,04,000 crore; Rs 13,000 crore repayments due in 2026-27 against Rs 10,000 crore planned borrowing; monthly salary and pension bill around Rs 2,000 crore

Quotes

Sukhvinder Singh Sukhu

Chief Minister of Himachal Pradesh

“The Orphan and Widow Cess sounds like a noble cause, but in the absence of data on the likely beneficiaries and the proposed payouts against the collections through the cess, it is nothing more than another attempt to fleece the people of Himachal and upset their household budgets.”
opindia.com
“If we are taking steps for the welfare of widows and orphaned children, the opposition should support it instead of opposing.”
wionews.com

Association of Petroleum Dealers

Trade association representing fuel dealers in Himachal Pradesh

“"If fuel prices go up, the price of everything else rises too. Inflation is already so high these days."”
livemint.com
“"Unjustified"”
NDTV

Dharamshala resident

Resident of Dharamshala

“"We are not happy with this hike. The government should also think about the poor and middle class. It is very hard for us."”
livemint.com

Sources

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